Dated: Aug 19, 2016
- Mega International Commercial Bank (the “Bank”) has signed a Consent Order with New York State Department of Financial Services (the “DFS”), to resolve New York branch’s violation of Anti-Money Laundering regulation of US.
- According to the Consent Order, the Bank will engage a compliance consultant designated by the DFS, to consult and oversee New York branch to improve its compliance function. In addition, the Bank will retain an independent monitor, designated by DFS to monitor all the transactions for the last 3 years. The Bank will pay US$180mn penalty to the DFS for this case.
- This incident took place back in Jan. ~ Mar. of 2015 when DFS was conducting regular audit on New York branch of the Bank. In the audit report issued on Feb 2016, it pointed out that when the branch was conducting remittance transaction, it failed to identify and report a few questionable transactions involved with suspected money laundering activities, and was in violation of US anti-money laundering related regulation.
- The Bank’s New York branch immediately adopted improvement measurement after the examination by DFS in 2015. In addition, New York Branch has hired many professional consultants to improve The bank anti-money laundering mechanism when receiving the examination report. The Bank will continue to work with DFS, fully strengthen New York branch’s various anti-money laundering mechanism, and strengthen the Bank’s anti-money laundering system and related operations across the branches.